Draft EUG Master Plan Update, February 2010

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CHAPTER5 FINANCIAL FEASIBILITY ANALYSIS Revenue at the Airport consists of both operating revenue generated through the operating cycle of the Airport and non-operating revenue generated through such sources as investment income and other non- aviation related rentals and fees. For purposes of this analysis, Airport revenues have been classified as airline revenue and non-airline revenue, with projections made by major source of revenue within each of the following classifications: Airline Landing Fees • Airline Common Use Fees • Airline Lease and Joint Use Fees • Airfield Area Revenue • Rental Auto Concession Fees • Food and Beverage Revenue • Miscellaneous Terminal Facility Revenue • Public Parking Facility Revenue • Other Revenue • Airline Landing Fees 4.1 Scheduled commercial airlines operating at the Airport are currently charged a landing fee of $2.20 per thousand pounds of landed weight. Pursuant to the provisions of the current Airport and airline use agreement, the airfield cost center ratemaking methodology is based upon a residual approach which is calculated by dividing estimated annual landed weight of signatory aircraft arrivals by the net airfield cost allocated to the airlines (both direct and indirect costs of the Airfield less other Airfield Revenues). Total airline landing fee revenue for FY 2009 is budgeted to be $1,086,733. Projections of future airline landing fee revenues are based on projected net costs allocated to the signatory airlines each fiscal year. As shown in Table 5-5, landing fee revenues for scheduled airline activity at the Airport are projected to increase from $1,086,733 in FY 2009 to $1,248,315 in FY 2016, representing a compounded annual increase of approximately 2.0 percent. Airline Common Use Fees 4.2 Common use fees represent charges to airlines for a portion of the total expense required to maintain public areas in the terminal building. The total common use fee requirement for the terminal building is collected from the airlines based on their respective share of passenger enplanements. The collection of an airline common use fee was initiated in FY 1997 under the terms of the Use Agreement with the airlines. Airline common use fee revenue has increased from $524,756 in FY 2003 to $710,686 in FY 2009 and as shown in Table 5-5, this source of revenue is projected to increase from $710,686 in FY 2009 to $1,000,007 in FY 2016. Airline Lease and Joint Use Fees 4.3 Rentals and fees from airline leased areas and joint use area fees represent Airport revenue from areas used exclusively, preferentially, or jointly by airlines operating at the Airport. Airport terminal building rental rates, which represent annual fees applied for areas rented by a tenant for exclusive and preferential use, are currently set at $29.86 per square foot. Airlines are also charged for their joint use of other areas and facilities in the terminal building. Airline joint use fees are paid to cover the cost of 5-19 Eugene Airport Master Plan Update (February 2010)